Value Added Tax (VAT) is a consumption-based tax applied at each stage of the supply chain when goods or services change hands. While businesses are responsible for collecting and remitting VAT to the government, the final cost is ultimately borne by the end customer. Since VAT was introduced in the UAE on January 1, 2018, a 5% tax applies to most goods and services.
At Al Merak, we help companies across the Emirates stay fully compliant with VAT rules by offering expert services such as registration, return filing, VAT accounting, training, and consultancy. With our assistance, your business can avoid costly mistakes and stay ahead of tax regulations.
Backlog accounts are unprocessed or incomplete accounts related to a company’s financial activities
Yes. The tax paid on imported items is eligible for input tax recovery. This can be claimed back via the Reverse Charge Mechanism.
Yes. Fuel expenditures incurred exclusively for business reasons can be recovered.
In Dubai, VAT-exempted supplies include financial services such as life insurance and reinsurance of life insurance; financial services that are not performed for an explicit fee, discount, commission, rebate, or similar type of consideration; residential buildings other than those that are specifically zero-rated; bare land; and local passenger transportation.
No. Businesses that provide exempted items or services are not eligible to claim input tax paid on purchases. The input tax paid would be considered a cost to the business.
